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Simpson Votes for Permanent Tax Relief for Families and Individuals

Tax Reform 2.0 Expands on Success of Tax Cuts and Jobs Act

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Washington, September 28, 2018 | comments

                                                                                                                                



Washington, D.C. – Idaho Congressman Mike Simpson voted this week for a series of bills aimed at protecting and expanding the historic wins accomplished by the Tax Cuts and Jobs Act (TCJA) of 2017.  Between the three bills, the “Tax Reform 2.0” package makes permanent the individual income tax provision of the TCJA and makes it easier for individuals to save for retirement, education, and other family expenses. The legislation package passed with bipartisan support.

“Tax Reform 2.0 builds on the success of the Tax Cuts and Jobs Act from 2017,” said Simpson.  “With the passage of the Tax Cuts and Jobs Act, we jump-started the economy by creating more jobs and increasing optimism on Main Street. Consumer confidence is at a nearly twenty year high, businesses are investing in their employees, and GDP grew by over four percent last quarter.  Tax Reform 2.0 expands on that success by giving American families long term certainty through making the individual tax cuts permanent. That means more money in the pockets of American families and individuals, so they can decide what is best for them. The bill also doubles the Child Tax Credit, establishes the Paid Family Leave Tax Credit, and makes the doubled exemption of the Death Tax from TCJA permanent.”

Tax Reform 2.0 also makes permanent the 20 percent deduction for pass-through business income, locking in significant tax relief to Main Street job creators.

Tax Reform 2.0 is comprised of the following bills:

  • H.R. 6760, the Protecting Family and Small Business Tax Cuts Act of 2018, would make the individual and small business tax cuts enacted in 2017 permanent. The Joint Committee on Taxation (JTC) estimates that this provision will increase long-run GDP by 2.2 percent and create 1.5 million new full-time jobs.  Additionally, H.R. 6760 would extend the newly-expanded medical expense deduction through the 2020 tax year, allowing more individuals to deduct their medical expenses. 

  • H.R. 6757, the Family Savings Act of 2018, would create new incentives for retirement savings as well as a new type of tax-deferred savings account. Individuals will be able to contribute up to $2,500 into the accounts on an annual basis, and any withdrawals are tax free.  This bill would make it easier for Americans to save for retirement, education, and other family expenses, and;

  •  H.R. 6756, the American Innovation Act of 2018, would help small businesses and encourages new entrepreneurs by allowing businesses to write off more of their initial start-up costs.

Simply put, Tax Reform 2.0 puts the focus on families and small businesses.  “When American voters chose Republicans to control the House, Senate, and White House, we made a promise to our constituents that we would deliver historic tax reforms,” said Simpson.  “The Tax Cuts and Jobs Act of 2017 fulfilled that promise, and Tax Reform 2.0 only doubles down on that success.  I am proud to support this legislation and urge the Senate to move quickly to send these bills to the President’s desk.”

 

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